Owens-Illinois, Inc. (NYSE: OI) reported its financial results for the full year and fourth quarter ended 31 December 2018.
Andres Lopez, CEO commented that in line with its guidance, the Company delivered solid financial performance in 2018, demonstrating growing resilience in overcoming currency and inflationary headwinds, it continues to progress in the ability to deliver, while also investing to support future shareholder value creation.
Throughout 2018, Europe’s focus on the top line sales mix management and premium products and the benefits of Total System Cost efforts drove higher profits and strong margin expansion. Over the course of the year, America’s team responded to several unplanned headwinds and the stronger U.S. dollar by growing sales volume outside the U.S. and reducing structural costs across the region. Asia Pacific completed its 2018 asset advancement program and exited the year with a strong margin, as expected. Given favourable market trends, ascribable growth opportunities, and continued structural cost reductions, the Company expects higher earnings and cash flow generation in 2019.
The Company’s joint venture with Constellation Brands, Inc., continues to perform well, again delivering higher sales compared with prior year, driven in part by the fourth furnace that ramped up early in 2018. The fifth furnace is expected to be completed by the end of 2019.
In November 2018, the Company acquired a 49.7 per cent interest in Empresas Comegua S.A., the leading manufacturer of glass containers for the Central American and Caribbean markets.
At Investor Day 2018, the Company announced its intention to pay a regular quarterly cash dividend to stockholders and increase its share repurchase program.
In 2019, the Company expects to deliver higher earnings from continuing operations with higher segment operating profit partially offset by non-operational items.